893.60 Manchuria/4–2646: Telegram

The Chargé in the United Kingdom (Gallman) to the Secretary of State

4520. Foulds, head Japanese Department Foreign Office, has shown us telegram from British Embassy Moscow dated April 21 giving [Page 1124] substance of Soviet reply to British representations of March 9 re removal of industrial equipment from Manchuria. Soviet reply states definitely it cannot agree to British view that Japan’s assets should be appropriated by state in whose territory they are located on a custodial basis to be debited against that state’s share of Japanese reparations. Soviet claim all equipment taken from Manchuria is that which has served needs of Japanese Army and therefore constitutes “war trophy” of Red Army. Soviets claim this understanding of term “war trophy” is in accordance with definition of conception of that term outlined in armistice agreements concluded by USSR, USA and UK with Bulgaria on October 28, 1944, and with Hungary on January 20, 1945.

Soviets express agreement with setting up an Inter-Allied Reparations Commission for Japan but state Japanese Assets Commission should dispose of, should include all assets and removable equipment as outlined in Potsdam Agreement47 including precious metals. Definite statement is made by Soviets that “war trophies” cannot be included in reparations. Soviet note apparently says nothing about talks with Chinese re joint operation of certain former Japanese enterprises in Manchuria.

  1. For the Potsdam Agreement, see report released August 2, 1945, Department of State Bulletin, August 5, 1945, p. 153; Foreign Relations, The Conference of Berlin (The Potsdam Conference), 1945, vol. ii, p. 1499.